Transformers and Rectifiers bags $16.8 mn orders; shares hit upper circuit

Shares of Transformers and Rectifiers hit a 5 per cent upper circuit on BSE on Thursday, August 22. Buying interest in the stock came after the heavy electrical equipment company bagged export orders worth $16.8 million.
 

At around 1:35 PM, shares of Transformers and Rectifiers were up by Rs 33.8 at Rs 710.45 per share. The market capitalisation of the company around the same time stood at Rs 10,662.64 crore.

The company filing said that it has been awarded two export orders. One order is for transformers for a total contract value of $14 million from Linxon Global Sweden. The entire work shall be completed by October 2025, the company added.

Another order was from Arcelor Mittal Mexico for transformers worth $2.80 million. The entire work shall be completed by December 2024.

As per its investor presentation, in the June quarter, the company had received an operational excellence award from Power Grid. It also successfully exported 220/253 MVA EAF Transformer, one of the largest ratings ever manufactured globally, and bagged a maiden order of 193 MVA single-phase STATCOM transformers.

The company received new orders worth Rs 698 crore during the quarter. It also received Power Grid Corporation of India Limited's (PGCIL) approval for reactors at its Changodar testing facility.

In a note to investors, the management of Transformers & Rectifiers said that it will increase its production capacity for renewable energy transformers, which will be available for commercial production from December 2024.

Transformers and Rectifiers Q1FY25

The company recorded a consolidated profit after tax (PAT) at Rs 20.87 crore against a loss of Rs 12.17 a year ago. The revenue for the quarter stood at Rs 322 crore against Rs 155.57 crore year-on-year (YoY), up 107 per cent, as per its investor presentation. 

The total income for the first quarter stood at Rs 326.03 crore against Rs 157.35 crore, a year ago.
 

In the past one year, shares of Transformers and Rectifiers India have gained 481 per cent, compared to the Nifty 50's rise of nearly 28 per cent during the same period.